Today UniCredit announced it is disclosing 2030 targets for the three most carbon intensive sectors within its portfolio which include Oil & Gas, Power Generation and Automotive sectors, to reach its Net Zero ambition at 2050. This is in line with the Net Zero commitment the bank signed in October 2021 and its continued support for a more sustainable global economy.
Targets for key carbon intensive sectors by 2030 compared to 2021 baseline
For the three most carbon intensive sectors the targets have been calculated using the International Energy Agency (IEA) Net Zero 2050 pathway as the benchmark scenario.
- Oil & Gas sector – UniCredit will target a 29% reduction in its Scope 3 financed emissions, starting from a baseline of 21.4Mt CO2e[1] in 2021. This target is related to the bank’s Oil & Gas drawn balance of €7.8 billion, focusing on lending on-balance exposure, including NPEs[2]. It relates to extraction, refining and distribution of Oil & Gas products.
In addition, UniCredit’s Oil & Gas Policy now prevents all support to Oil & Gas activities in the Artic Region, and all new explorations and expansions of oil reserves. Meanwhile, our Coal Policy anticipates the phase-out of coal financing by 2028.[3]
- Power Generation – UniCredit will target a c. 47% reduction in Scope 1 weighted physical intensity at 111 gCO2e/kWh[4] from a baseline of 208 gCO2e/kWh in 2021, through rebalancing its portfolio and significantly increasing green lending activities.
This target is related to the bank’s Power Generation drawn balance of €8.9 billion and only includes electricity generation companies.
- Automotive – UniCredit will target a c. 41% reduction in Scope 3 “Tank To Wheel”[5] weighted physical intensity at 95 gCO2/vkm[6] from a baseline of 161 gCO2/vkm.
This target is related to the bank’s Automotive drawn balance of €1.8 billion, excluding parts’ manufacturers, heavy-duty vehicles’ manufacturers and small retail companies (c. 1% of total drawn balance).
To support the achievement of these goals, dedicated initiatives are being developed focusing on:
- Strengthening of advisory services for corporates in high emitting sectors.
- Significantly boosting our sustainable lending (green loans and sustainability linked loans) to support our clients in their journey to decarbonise their operations and diversify away from carbon intensive sectors.
- Support to clients in the development and scaling up of innovative climate solutions.
- Targeted partnerships with companies specialised in sustainability for specific sectors.
All the above actions are complemented by our sector policies, including for Oil & Gas and Coal. These ensure we constantly reinforce our responsible and sustainable approach to the phase-out from hard-to-abate sectors with a clear focus on accelerating the energy transition through green financing. In addition to internal actions, UniCredit is proud to join the collective efforts of external industry working groups, including the Sustainable STEEL Principles and the European Clean Hydrogen Alliance, to support the necessary transformation of these sectors through cross-company collaboration and engagement.
Enquiries: nfejbsfmbujpotAvojdsfeju/fv
About UniCredit
UniCredit is a pan-European Commercial bank with a unique service offering in Italy, Germany, Central and Eastern Europe. Our purpose is to empower communities to progress, delivering the best-in-class for all stakeholders, unlocking the potential of our clients and our people across Europe. We serve over 15 million customers worldwide. They are at the heart of what we do in all our markets. UniCredit is organized in four core regions and two product factories, Corporate and Individual Solutions. This allows us to be close to our clients and use the scale of the entire Group for developing and offering the best products across all our markets. Digitalization and our commitment to ESG principles are key enablers for our service. They help us deliver excellence to our stakeholders and create a sustainable future for our clients, our communities and our people.
[1] MtCO2e: millions of tons of carbon dioxide equivalent
[2] NPEs – non-performing exposures
[3] Green financing is allowed beyond 2028 only for non coal developers (no increase in coal business since Sep. 2020) and if they have a phase out plan in line with their National Energy & Climate Plan
[4] gCO2e/kWh – grams of carbon dioxide equivalent per kilowatt-hour of electricity generated
[5] Tank To Wheel – greenhouse gas emissions from internal combustion engine tailpipes
[6] gCO2/vkm: grams of carbon dioxide per kilometre driven by a vehicle